NAC 628.010Definitions. (NRS 628.120)As used
in this chapter, unless the context otherwise requires:

1. “Board” means the Nevada State Board of
Accountancy.

2. “Practitioner” means:

(a) A certified public accountant or a public
accountant licensed by the Board to engage in the practice of public
accounting; or

(b) A certified public accountant or firm of
certified public accountants which does not hold a live permit and does not
have a registered office or residence in this State, but has been issued, or
has applied for, a temporary permit pursuant to NRS 628.440.

[Bd. of Accountancy, Art. 1 § 1, eff. 5-13-82]—(NAC A
12-13-96)

NAC 628.015Committees of Board. (NRS 628.120, 628.170)The
Board will establish standing or temporary committees as it deems necessary.
Written minutes of all deliberations must be maintained.

(a) For an initial
examination for a certificate as a certified public accountant, the Board
will establish each year a fee that will not exceed $500.

(b) For reexamination,
the Board will establish each year a fee for each section that will not
exceed $100.

(c) For the transfer
of the examination grades of an applicant to another state or jurisdiction of
the United States..................................................................................

$50

2. The
following fees for applications are prescribed by the Board:

(a) For an application
for a certificate as a certified public accountant by reciprocity or pursuant
to passing the Uniform Certified Public Accountant Examination administered
in this State or in another jurisdiction...............................

$200

plus
the actual cost of the investigation required pursuant to NAC 628.019, which will not exceed $75.

(b) For an application
for registration of a corporation, limited-liability company or partnership

$200

3. The
following other fees are prescribed by the Board:

(a) For a temporary
permit to a nonresident accounting firm:

The
proprietor, partner, member or shareholder responsible for the conduct of the
engagement..................................................................................................

$200

Each
additional person employed in the conduct of the engagement during the period
of the permit......................................................................................

$25

(b) For filing an
annual report for a corporation, limited-liability company or partnership...................................................................................................................

$125

(c) For the late
filing of an annual report of a corporation, limited-liability company or
partnership................................................................................................

$100

(d) For reinstatement
into public practice from retired or inactive status..............

$250

(e) For the late
filing of the annual renewal of a permit to practice public accounting, after
January 31 of each year...................................................................

$100

(f) For an individual
evaluation of experience pursuant to subsection 2 of NAC
628.060, in addition to any reasonable costs of travel actually incurred
by the Board and imposed pursuant to subsection 3 of NAC
628.060..................................

$1,000

(g) For registering a
fictitious name.......................................................................

$100

(h) A uniform fee for
an annual permit or an annual renewal of a permit to practice public
accounting will be established by the Board each year. The fee will not
exceed $200 and will be prorated if an initial annual permit is obtained
during the year.

4. Any fee paid
pursuant to this section must be paid in the currency of the United States.

(a) An hour spent performing an operational audit,
financial audit, compliance audit, management audit or any other audit; or

(b) For determining the internal audit experience
or governmental experience of an applicant for a certificate of certified
public accountant, an hour spent performing an audit which is substantially
similar to audits required in the practice of public accounting.

Ê The term does
not include an hour spent performing work typically performed by a
controllership or assisting an independent auditor in preparing schedules.

2. “Qualified internal audit department”
means an audit department which complies with the requirements set forth in NAC 628.0624.

1. Applications to take the examination for
certification as a certified public accountant must be made on a form provided
by the Board and filed with the Board. The examinations will be held at
locations designated by the Board.

2. Each applicant must submit the names of
at least three persons, one of whom must be a resident of Nevada and none of
whom may be related by blood or marriage to the applicant, who can vouch for
the applicant’s character. No person may take the examination until the Board
is satisfied that the person is of fiscal integrity and without any history of
acts involving dishonesty or moral turpitude.

3. An application is not considered filed
until the fee for the examination and all required supporting documents,
including official transcripts, have been received by the Board.

4. An applicant who fails to appear for an
examination forfeits the fees charged for the examination unless the Board
determines, based on information supplied by the applicant, that there existed
reasonable cause beyond the applicant’s control for the failure to appear.

5. Notice of the acceptance of the
application will be mailed to each applicant.

1. The examination required by NRS 628.190 is the Uniform
Certified Public Accountant Examination.

2. In addition to the Uniform Certified
Public Accountant Examination, no earlier than 3 years before filing the
application for certification as a certified public accountant, an applicant
must pass an examination in professional ethics which is prescribed by or
acceptable to the Board.

1. On or after January 1, 2004, the
examination will be conducted on a computer. The passing grade for each section
of the examination is 75.

2. Except as otherwise provided in this
section, an applicant who at one sitting receives a passing grade on any
section of the examination is entitled to receive conditional credit for each
section passed. Any conditional credit granted pursuant to this section expires
if all unpassed sections of the examination have not been completed within 18
months after the applicant passes a section of the examination. An applicant
may not be reexamined on any section for which he or she did not receive a
passing grade during the calendar quarter in which he or she failed to receive
a passing grade for that section.

3. An applicant who receives conditional
credit before January 1, 2004:

(a) Is entitled to receive conditional credit for
the corresponding section of the examination conducted on or after January 1,
2004.

(b) May take the examination conducted on or after
January 1, 2004, as many times as the applicant would have been entitled to
take the examination conducted before January 1, 2004.

(c) And fails to pass the remaining sections of the
examination within the number of examinations authorized for an applicant
before January 1, 2004:

(1) Forfeits any conditional credit he or she
received for any section of the examination he or she passed before January 1,
2004; and

(2) Does not forfeit any conditional credit he
or she received for any section passed on the examination conducted on or after
January 1, 2004.

1. The provision set forth in NRS 628.200 requiring at least 150
semester hours from a college or university recognized by the Board may be
satisfied in whole or in part by the equivalent number of quarter hours of
college credits from a college or university recognized by the Board.

2. The 150 semester hours required pursuant
to NRS 628.200 must include at
least:

(a) Thirty semester hours in courses above the
level of introductory courses which include 9 hours in financial accounting, 3
hours in cost and managerial accounting, 3 hours in auditing, 3 hours in
federal income tax and 12 hours in electives related to accounting;

(b) Three semester hours in business law; and

(c) Twenty-four semester hours of courses in
business, at the undergraduate or graduate level, other than courses in
accounting and courses required under paragraphs (a) and (b), in the following
subject areas:

(1) Behavior of organizations, groups and
persons.

(2) Business finance.

(3) Business law.

(4) Computers.

(5) Data processing.

(6) Economics.

(7) Ethics in business.

(8) Legal and social environment of business.

(9) Management.

(10) Marketing.

(11) Oral communication.

(12) Quantitative applications in business.

(13) Statistics.

(14) Written communication, other than English
courses for freshman students, including, but not limited to, business
communications, advanced grammar and technical writing.

Ê The semester
hours required by this subsection may be satisfied in whole or in part by the
equivalent number of quarter hours of college credits from a college or
university recognized by the Board.

3. An applicant holding a bachelor’s degree
and a master’s degree in accounting that combined include 150 semester hours of
education awarded by an institution which is accredited by an organization
approved by the Board on the dates the degrees are awarded shall be deemed to
be in compliance with the educational requirements set forth in NRS 628.200 and this section.

4. If a school or institution does not use a
system of accounting based upon semester hours, the Board will convert the
hours completed in such a school or institution to semester hours based upon a
standard system of conversion.

(Added to NAC by Bd. of Accountancy, 5-18-94, eff. 1-1-01;
A 12-13-96)

1. Except as otherwise provided in NAC 628.061, the minimum requirements of experience in
the function of attesting in the practice of public accounting, professionally
known as the attest function, are as follows:

(a) An applicant for a certificate of certified
public accountant must have at least 1,000 hours of experience in the attest
function, of which not more than 300 hours may consist of reviews or full
disclosure compilations. This includes the planning, management and execution
of such engagements.

(b) An applicant may acquire this experience by
participating in the planning, management and performance of such engagements
for at least 600 hours, of which no more than 180 hours may consist of reviews
or full disclosure compilation, if the applicant has also completed formal
programs of training of a character and magnitude which are, when considered
with the experience obtained in the function of attesting, substantially
equivalent in the Board’s judgment to 1,000 hours of attesting experience as
described in paragraph (a).

2. The Board will, upon receipt of an
application, evaluate the character of experience obtained under the
supervision of a certified public accountant by persons employed by specific
agencies of the government or an internal audit department of a business and
define the duration and the character of that work with specified programs of
training that are substantially equivalent to 2 years of experience in the
practice of public accounting. The Board will allow 1/2 of the number of months
of experience earned by the person as a credit toward the requirements set
forth in subsection 1 of NRS 628.200.

3. An applicant for a certificate who has
requested an individual review must pay an additional fee for the evaluation by
the Board of the extent and nature of a person’s experience or the extent and
nature of the experience provided by any specific governmental agency or an
internal audit department of a business. The Board may require an applicant to
reimburse the Board for reasonable costs of travel actually incurred in
evaluating the character of an applicant’s experience.

4. A person who has passed the examination
for a certificate as a certified public accountant will not be held to a higher
standard in the evaluation of his or her experience than the standard defined
by the Board on the date he or she passed the examination.

5. An applicant must submit a certificate of
attest experience to the Board as proof of his or her attest experience. The
certificate must:

(a) Be signed, under penalty of perjury, by the
certified public accountant who supervised the applicant’s work.

(b) Identify separately the number of hours of
attest experience in each of the following areas:

(1) Audit.

(2) Review.

(3) Full disclosure compilation.

6. The attest experience described in
subsection 5 must include experience relating to:

(a) The evaluation of internal control as a basis
for reliance thereon for the determination of the extent of the tests to which
auditing procedures in the program of audit are to be applied;

(b) The planning of the program of audit work,
including the selection of the procedures to be followed;

(c) The preparation and indexing of audit work
papers relating to the audits of financial statements;

(d) The application of various auditing procedures
and techniques to the usual and customary financial transactions;

(e) The preparation of the auditor’s report and the
preparation of written explanations and comments relating to the findings of
the audit and the content of the accounting records; and

(f) The preparation and analysis of financial
statements.

7. The applicant shall keep a record of his
or her work experience, including related work papers, for review by the Board.

8. Except as otherwise provided in
subsection 12, an applicant who has requested an individual review pursuant to
this section must complete at least 120 hours of credit in the following
subject areas:

Subject Area

Hours
of Credit

Professional Training for
Public Accountants - Level I...............................

24

(Staff Training -
Basic)

Designing Audit Programs for
Small

Business Engagements............................................................................

8

Professional Training for
Public Accountants - Level II..............................

9. The number of hours of credit designated
for each subject area listed in subsection 8 is the minimum number of hours
required for that subject area.

10. An applicant may take more than one
course in any subject area.

11. An applicant is entitled to receive
credit for any course he or she completes in the program, regardless of the
title of the course, if the content of the course is within one of the subject
areas listed in subsection 8.

12. The Board may waive any course required
by subsection 8 if it finds that the applicant has demonstrated sufficient
knowledge of that course.

1. If an applicant for a certificate of
certified public accountant has at least 600 hours of experience in the attest
function, including at least 420 audit hours, but less than 1,000 hours of
experience in the attest function, including at least 700 audit hours, the
applicant must supplement his or her experience in the function of attesting by
successfully completing the educational program described in subsection 2 which
is offered by the American Institute of Certified Public Accountants or a substantially
equivalent program approved by the Board.

2. To comply with the requirements set forth
in subsection 1, an applicant must complete at least 80 hours of credit in the
following subject areas:

Subject Area

Hours
of Credit

Professional Training for
Public Accountants - Level II...............................

24

(Staff Training -
Semi-Senior)

Professional Training for
Public Accountants - Level III.............................

3. The number of hours of credit designated
for each subject area listed in subsection 2 is the minimum number of hours
required for that subject area.

4. An applicant may take more than one
course in any subject area.

5. An applicant is entitled to receive
credit for any course he or she completes in the program, regardless of the
title of the course, if the content of the course is within one of the subject
areas listed in subsection 2.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 5-18-94;
12-13-96)

1. An applicant who submits an application
to the Board for a certificate of certified public accountant may satisfy the
requirements of subsection 2 of NRS
628.200 if he or she:

(a) Completes at least 2,000 qualified audit hours
while employed as an internal auditor with a qualified internal audit
department;

(b) Has at least 4 years of work experience
employed as an internal auditor with a qualified internal audit department
under the supervision of a certified public accountant; and

(c) Successfully completes the educational program
described in NAC 628.0622 which is offered by the
American Institute of Certified Public Accountants or a substantially equivalent
program approved by the Board.

2. An applicant must comply with each of the
requirements set forth in subsection 1 before submitting the application to the
Board. The Board will not accept work experience, including experience in
public accounting or governmental experience, other than that which is required
by this section.

2. The number of hours of credit designated
for each subject area listed in subsection 1 is the minimum number of hours
required for that subject area.

3. An applicant may take more than one
course in any subject area.

4. An applicant is entitled to receive
credit for any course he or she completes in the program, regardless of the
title of the course, if the content of the course is within one of the subject
areas listed in subsection 1.

5. An applicant may complete the
requirements of the three levels of professional training described in
subsection 1 by completing internal courses which have been previously approved
by the Board as being substantially the equivalent of the three levels of
professional training described in subsection 1.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 5-18-94;
12-13-96)

NAC 628.0624Experience as internal auditor: Qualification of internal audit
department. (NRS
628.120, 628.200)The
Board will designate the internal audit department of a business as a qualified
internal audit department if:

1. The department submits an application for
designation as a qualified internal audit department;

2. The director of the department is:

(a) A certified public accountant; and

(b) Directly responsible to and reports directly to
the audit committee of the board of directors of the business, the board of
directors of the business or an equivalent organizational body of the business
which is approved by the board;

3. The department is sufficiently independent
to allow it to be objective and to provide impartial and unbiased judgments
essential to the proper conduct of its audits;

4. The department has received an external
quality control review which is acceptable to the Board and an external quality
control review of the department is conducted every 3 years pursuant to a
program approved by the Board; and

5. The department establishes and maintains
policies and procedures concerning quality control which are appropriately
documented and comply with professional standards of auditing or accounting.

1. Notify the Board of each external quality
control review conducted pursuant to subsection 4 of NAC
628.0624. The Board may observe the final conference for that review.

2. Submit the report of the external quality
control review, letter of comments and responses thereto to the Board within 30
days after they are received by the qualified internal audit department.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 12-13-96)

NAC 628.0628Experience as internal auditor: Maintenance and destruction of
record of experience. (NRS 628.120, 628.200)

1. A qualified internal audit department or
an applicant earning work experience employed as an internal auditor with the
department shall keep a record of the applicant’s work experience, including
related work papers, for review by the Board.

2. A qualified internal audit department may
establish a policy concerning the destruction of the records of an applicant’s
work experience, including related work papers. The policy established by the
department must provide for:

(a) The notification of an applicant concerning the
destruction of the records of his or her work experience, including related
work papers; and

(b) An opportunity for the applicant to obtain a
copy of those records before they are destroyed.

1. Except as otherwise provided in
subsection 2, the Board will accept experience earned by an applicant while
working as an internal auditor in a qualified internal audit department before
July 6, 1992, for the purposes of complying with the requirements set forth in NAC 628.062, if at the time the hours of experience
were earned, the qualified internal audit department complied with the
requirements set forth in NAC 628.0624 and 628.0626, except the requirement for an external
quality control review.

2. The Board will not accept any experience
which was earned by an applicant more than 5 years before July 6, 1992.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92)

NAC 628.064Experience as auditor of State Gaming Control Board: “Audit
Division” defined. (NRS 628.120, 628.200)As used
in NAC 628.0642 and 628.0646,
unless the context otherwise requires, “Audit Division” means the Audit
Division of the State Gaming Control Board.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 12-13-96)

NAC 628.0642Experience as auditor of State Gaming Control Board: General
requirements. (NRS
628.120, 628.200)

1. An applicant employed as an auditor by
the Audit Division who submits an application to the Board for a certificate of
certified public accountant may satisfy the requirements of subsection 2 of NRS 628.200 if he or she:

(a) Has at least 4 years of experience as an
auditor with the Audit Division under the supervision of a certified public
accountant; and

(b) Successfully completes the educational program
described in NAC 628.0644 which is offered by the
American Institute of Certified Public Accountants or a substantially
equivalent program approved by the Board.

2. An applicant must comply with each of the
requirements set forth in subsection 1 before submitting the application to the
Board. The Board will not accept work experience, including experience in
public accounting, internal audit experience or other governmental experience,
other than that which is required by this section.

2. The number of hours of credit designated
for each subject area listed in subsection 1 is the minimum number of hours
required for that subject area.

3. An applicant may take more than one
course in any subject area.

4. An applicant is entitled to receive
credit for any course he or she completes in the program, regardless of the
title of the course, if the content of the course is within one of the subject
areas listed in subsection 1.

5. An applicant may complete the
requirements of the three levels of professional training described in
subsection 1 by completing internal courses which have been previously approved
by the Board as being substantially the equivalent of the three levels of
professional training described in subsection 1.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 5-18-94;
12-13-96)

NAC 628.0646Experience as auditor of State Gaming Control Board: Quality
control review of Audit Division. (NRS 628.120, 628.200)

1. A quality control review of the Audit
Division must be conducted every 3 years pursuant to a program approved by the
Board.

2. The Audit Division shall:

(a) Notify the Board of each final conference for
the quality control review. The Board may observe the conference.

(b) Submit the report of the review, letter of
comments and responses thereto to the Board within 30 days after they are
received by the Audit Division.

1. An applicant employed as an auditor by
the Audit Division who submits an application to the Board for a certificate of
certified public accountant may satisfy the requirements of subsection 2 of NRS 628.200 if he or she:

(a) Has at least 4 years of experience as an
auditor with the Audit Division under the supervision of a certified public
accountant; and

(b) Successfully completes the educational program
described in NAC 628.0654 which is offered by the
American Institute of Certified Public Accountants or a substantially
equivalent program approved by the Board.

2. An applicant must comply with each of the
requirements set forth in subsection 1 before submitting the application to the
Board. The Board will not accept work experience, including experience in
public accounting, internal audit experience or other governmental experience,
other than that which is required by this section.

2. The number of hours of credit designated
for each subject area is the minimum number of hours required for that subject
area.

3. An applicant may take more than one
course in a subject area.

4. An applicant is entitled to receive
credit for any course he or she completes in the program, regardless of the
title of the course, if the content of the course is within one of the subject
areas listed in subsection 1.

5. An applicant may complete the
requirements of the three levels of professional training described in
subsection 1 by completing internal courses which have been previously approved
by the Board as being substantially the equivalent of the three levels of
professional training described in subsection 1.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 5-18-94;
12-13-96)

1. An applicant employed as an agent by the
Internal Revenue Service who submits an application to the Board for a
certificate of certified public accountant may satisfy the requirements of
subsection 2 of NRS 628.200 if
he or she:

(a) Completes at least 2,000 qualified audit hours
as an agent of the Internal Revenue Service;

(b) Has at least 4 years of experience as an agent
of the Internal Revenue Service, under the supervision of a certified public
accountant, of which at least 2 years must have been at a grade of not less
than GS-11; and

(c) Successfully completes the educational program
described in NAC 628.0668 which is offered by the
American Institute of Certified Public Accountants or a substantially
equivalent program approved by the Board.

2. An applicant must comply with each of the
requirements set forth in subsection 1 before submitting the application to the
Board. The Board will not accept work experience, including experience in
public accounting, internal audit experience or other governmental experience,
other than that which is required by this section.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A by
R075-03, 10-28-2003)

NAC 628.0662Experience as agent of Internal Revenue Service: Conditions for
acceptance of qualified audit hours. (NRS 628.120, 628.200)The Board
will not accept qualified audit hours earned by an applicant as an agent
employed by the Internal Revenue Service unless:

1. He or she has at least 2 years of
experience as an agent of the Internal Revenue Service at a grade of not less
than GS-11;

2. He or she has passed the Uniform
Certified Public Accountant Examination; and

3. An internal review committee established
by the Internal Revenue Service has approved his or her work experience as an
agent employed by the Internal Revenue Service.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A by
R075-03, 10-28-2003)

1. If an internal review committee for the
Internal Revenue Service is established in this State and if a biographical
profile of each member appointed to the committee by the Internal Revenue
Service is provided to the Board, the Board will approve or disapprove the
members of the committee. The Board will not approve any member of the
committee unless he or she is a certified public accountant certified by the Board
and exercises supervisory duties as an employee of the Internal Revenue
Service.

2. The internal review committee shall
review and, if appropriate, approve audit work of each person who submits an
application pursuant to NAC 628.066.

3. The committee shall assign a case of
sufficient volume and difficulty to each applicant for performance of the
applicant’s qualified audit hours. The case must:

(a) Consist of not less than $10,000,000 in assets
and be audited in accordance with the procedures for large cases and generally
accepted auditing standards; and

(b) Include the preparation of an opinion report
concerning related financial information.

Ê The committee
shall not assign the same case to more than one applicant.

4. At least two members of the committee
shall sign the applicant’s certificate of attest experience, if the members of
the committee have determined that the applicant has complied with the
requirements set forth in the certificate and NAC 628.066
and 628.0662. Any member of the committee who
refuses to sign the form shall file a dissenting opinion with the certificate.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A by R075-03,
10-28-2003)

NAC 628.0666Experience as agent of Internal Revenue Service: Maintenance of
record of experience. (NRS 628.120, 628.200)To
satisfy the requirements of subsection 2 of NRS 628.200, an applicant earning
work experience as an agent employed by the Internal Revenue Service shall keep
a record of his or her work experience, including related work papers, for
review pursuant to NAC 628.067.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 12-13-96;
R075-03, 10-28-2003)

2. The number of hours of credit designated
for each subject area listed in subsection 1 is the minimum number of hours
required for that subject area.

3. An applicant may take more than one
course in any subject area.

4. An applicant is entitled to receive
credit for any course he or she completes in the program, regardless of the
title of the course, if the content of the course is within one of the subject
areas listed in subsection 1.

5. An applicant may complete the
requirements of the three levels of professional training described in
subsection 1 by completing internal courses which have been previously approved
by the Board as being substantially the equivalent of the three levels of
professional training described in subsection 1.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 5-18-94;
12-13-96)

1. The Board will not accept qualified audit
hours earned by an applicant as an agent employed by the Internal Revenue
Service unless:

(a) An independent quality control review of the
Internal Revenue Service is conducted every 3 years pursuant to a program
approved by the Board.

(b) The Internal Revenue Service establishes and
maintains appropriately documented policies and procedures relating to quality
control which comply with professional standards of auditing or accounting.

2. The Internal Revenue Service shall:

(a) Notify the Board of each final conference of
the review of the Internal Revenue Service. The Board may observe the final
conference.

(b) Submit the report of the review, letter of
comments and responses thereto to the Board within 30 days after they are received
by the Internal Revenue Service.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A by
R075-03, 10-28-2003)

NAC 628.068Experience in internal auditing work or governmental accounting
and auditing work: Additional means of satisfying requirements. (NRS 628.120, 628.200)An
applicant for a certificate of certified public accountant who has not complied
with the provisions set forth in NAC 628.061 to 628.067, inclusive, may satisfy the requirements of
subsection 2 of NRS 628.200 by
requesting an individual evaluation of his or her experience as provided in
subsection 2 of NAC 628.060 and paying the fee set
forth in paragraph (f) of subsection 3 of NAC 628.016.

(Added to NAC by Bd. of Accountancy, eff. 7-6-92; A by
R192-97, 1-30-98)

NAC 628.070Certificate by reciprocity or temporary permit. (NRS 628.120, 628.310, 628.440)The
Board may grant a certificate by reciprocity or a temporary permit to practice
to any person who is the holder of:

1. A certificate as a certified public
accountant then in effect issued pursuant to the laws of any state or other
jurisdiction of the United States; or

2. An equivalent certificate then in effect
issued by a foreign country pursuant to the provisions of NRS 628.310.

1. The examination for a certificate as a
certified public accountant will not be waived for an applicant whose
certificate as a certified public accountant was based in whole or in part on
the entitlement of the applicant to practice public accounting in a foreign
country unless the applicant has passed an equivalent examination approved by
the Board.

2. Every applicant for a certificate as a
certified public accountant who wishes to obtain a waiver of the examination
must file the application upon a form provided by the Board, accompanied by the
prescribed fee.

3. The Board may accept the scores of an
applicant from the Uniform Certified Public Accountant Examination taken in
another state and waive the manner in which the scores were obtained.

4. An applicant must submit proof that he or
she has completed at least 20 hours of continuing education within 12 months
before the date of filing the application for the issuance of a certificate.

1. Pursuant to the provisions of NRS 628.310, an applicant whose
certificate as a certified public accountant was issued by another state or
jurisdiction of the United States approved by the Board or who holds an
equivalent certificate then in effect issued by a foreign country pursuant to
the provisions of NRS 628.310 is
eligible for the issuance of a temporary permit if the applicant passes an
examination approved by the Board that is substantially equivalent to the
examination for a certificate as a certified public accountant that is
conducted by the Board.

2. An application for a temporary permit
must be in the name of the firm proposing to conduct the engagement and must be
executed by the proprietor, partner, member or shareholder responsible for the
conduct of the engagement. The person executing the application must have
completed at least 80 hours of continuing education in a qualified program
during the 2 calendar years immediately preceding the commencement of the
engagement.

3. If the applicant is a partnership, a
limited-liability company or a corporation of certified public accountants, the
applicant must comply with the applicable requirements of NRS 628.325 to 628.370, inclusive.

4. The application must specify the name of
the client, the nature of the service to be provided and the anticipated
duration of the engagement. A temporary permit is valid for the duration of the
engagement or for 6 months, whichever is less. If the engagement is longer than
6 months, new permits must be obtained for each subsequent 6-month period or
portion thereof.

5. An agent designated pursuant to
subsection 3 of NRS 628.440
shall serve for all future engagements of the applicant until the Board is
advised to the contrary by the agent or by the applicant.

6. Within 30 days after the expiration of a
temporary permit, the applicant shall report to the Board the names of all
persons present in the State and employed in the conduct of the engagement
during the period of the permit and shall pay any additional fees prescribed by
the Board. If reports or fees are delinquent from any prior engagement, the
Board will not issue any further temporary permits to the applicant for any
purpose. Delinquent reports must be accompanied by a delinquency penalty of 25
percent of the sum due for each 30-day period or part thereof during which the
reports are delinquent, but a delinquency penalty must not exceed $500 per
report. The Board may waive such penalties in whole or in part if there is
reasonable cause. All reports made pursuant to this section are subject to
audit by the Board or its representatives.

7. Applicants, their partners, members,
shareholders, employees and affiliates, while practicing under a temporary
permit, must comply with the regulations adopted by the Board which are
effective during the term of the engagement.

1. The certificate of a certified public
accountant or the registration of a public accountant who holds a live permit
and is in good standing may, upon application to the Board by the holder
thereof, be placed by the Board on retired or inactive status.

2. A certified public accountant or a
registered public accountant whose certificate or registration is placed on
retired status pursuant to subsection 1 must, if he or she thereafter includes
any reference to his or her certification or registration on a business card,
letterhead or similar document or device, include the word “retired”
immediately following each such reference.

3. Any employment related to the financial
functions of business or government, including, without limitation, the
supervision of such functions, will be considered as active involvement in the
accounting profession, and the holder of the certificate or registrant does not
qualify for inactive status.

4. A former holder of a certificate or a
former registrant may be reinstated into the practice of public accounting from
retired or inactive status by submitting an application to the Board
accompanied by the fee prescribed in NAC 628.016.
The applicant must show that he or she has completed at least 40 hours of
continuing education during the 12 months immediately preceding the
application.

5. A former holder of a certificate whose
certificate has been voluntarily surrendered to the Board must submit:

(a) A new application for licensing accompanied by:

(1) The application fee;

(2) The fee for annual renewal of the permit
for any year the fee was not paid before he or she surrendered the certificate;
and

(3) The penalty for late filing for any year
fees were not paid before he or she surrendered the certificate as prescribed
in paragraph (e) of subsection 3 of NAC 628.016;
and

(b) Proof that he or she has completed at least 40
hours of continuing education during the 12 months immediately preceding the
application.

6. A former holder of a certificate whose
certificate has been revoked for nonpayment of fees must submit:

(a) A new application for licensing accompanied by:

(1) The application fee;

(2) The fee for annual renewal of the permit
for any year that the fee was not paid before the certificate was revoked; and

(3) The penalty for late filing prescribed in
paragraph (e) of subsection 3 of NAC 628.016 for
any year that a fee was not paid before the certificate was revoked; and

(b) Proof that he or she has completed at least 80
hours of continuing education programs approved by the Board during the 12
months immediately preceding the filing of the new application.

7. For the purposes of this section:

(a) “Inactive status” means the voluntary reversion
by a holder of a certificate or a registrant to a nonprofessional status
outside the fields of public, private or governmental accounting before
reaching the age of retirement; and

(b) “Retired status” means the voluntary
termination by a holder of a certificate or a registrant of all activities in
the profession of public or private accounting upon the attainment of at least
60 years of age or upon becoming permanently disabled and no longer gainfully
employed.

1. Applications for registration or any
other required document or report must be filed with the Board at its office.

2. A corporation, limited-liability company
or partnership must file with the Board an application for registration on a
form furnished by the Board. The application must be accompanied by the
prescribed fee.

3. An application for registration of a
fictitious name must be filed on a form furnished by the Board. The application
must be accompanied by the prescribed fee.

4. The Board, within a reasonable time after
the submission of an application for registration, will either approve the
application and issue a certificate of registration or refuse approval and
notify the applicant of the reasons for refusal and the procedure for
requesting a hearing on the disapproval.

NAC 628.140Name of proprietorship, partnership, limited-liability company or
professional corporation. (NRS 628.120)

1. The name under which a proprietorship,
partnership, limited-liability company or professional corporation engages in
the practice of public accounting may not be misleading or deceptive.

2. The name of a firm is misleading or
deceptive if the name of the firm:

(a) Implies the existence of a corporation, when
the firm is not a corporation, by the use of the abbreviations “P.C.,” “Ltd.”
or similar abbreviations.

(b) Implies the existence of a partnership, when
the firm is not a partnership, by the use of a designation similar to “Smith
& Jones” or “C.P.A.’s.”

(c) Implies the existence of a limited-liability
company, when the firm is not a limited-liability company, by the use of the
abbreviations “Ltd.,” “L.L.C.,” “LLC” or “LC.”

(d) Includes the name of a proprietor, partner,
member or shareholder who has withdrawn from the firm or, in the case of a
corporation, has terminated his or her employment other than by retirement from
public practice or by death, without the written consent of the person who has
withdrawn being first obtained by the firm and filed with the Board. The name
of the proprietor, partner, member or shareholder must be removed from the name
of the firm or corporation within 120 days after the withdrawal or termination.

(e) Implies more than one principal, when there is
only one shareholder, one member or one proprietor, by the use of a designation
similar to “Smith & Co.,” “Smith & Assoc.” or “Smith Group.”

(f) Contains a misrepresentation of fact.

(g) Creates or is likely to create false or
unjustified expectation of favorable results.

(h) Includes the name of a person who is not
registered as a certified public accountant in any state or other jurisdiction
of the United States or a foreign country.

3. A fictitious name must not be formulated
in such a manner that the initials or parts of the name form a term or phrase
that is misleading or deceptive.

4. A proprietorship, partnership,
limited-liability company or corporation engaged in the practice of public
accounting may not render professional services using:

(a) A name other than that which is stated in its
certificate of registration; or

(b) A fictitious name unless the fictitious name
has been registered with and approved by the Board.

1. Proprietorships, partnerships,
limited-liability companies and corporations holding certificates of
registration to practice as certified public accountants may affiliate with
other partnerships, partnerships of partnerships, limited-liability companies
or corporations for the practice of public accounting if all proprietors,
partners, members or shareholders of the affiliated firms in the practice of
public accounting in the United States or its territories are:

(a) Certified public accountants in good standing
in some other state or territory of the United States;

(b) Persons who are the holders of an equivalent
certificate then in effect issued by a foreign country who meet the
requirements set forth in subsection 2 of NRS 628.310; or

(c) Persons who meet the requirements set forth in
subsection 5 of NRS 628.325.

2. Proprietorships, partnerships,
limited-liability companies and corporations holding permits to practice as
public accountants may affiliate with other partnerships, partnerships of partnerships,
limited-liability companies or corporations for the practice of public
accounting if all proprietors, partners, members or shareholders of affiliated
firms regularly engaged in the practice of public accounting in this State are
public accountants or certified public accountants holding a live permit in
this State and all other proprietors, partners, members or shareholders of the
affiliated firms in the practice of public accounting in the United States or
its territories are:

(a) Certified public accountants in good standing
in some other state or territory of the United States;

(b) Persons who are the holders of an equivalent
certificate then in effect issued by a foreign country who meet the
requirements set forth in subsection 2 of NRS 628.310; or

(c) Persons who meet the requirements set forth in
subsection 5 of NRS 628.325.

NAC 628.160Transfer of interest in partnership, limited-liability company or
corporation. (NRS
628.120)

1. The personal representative or estate of
a practitioner who has died or become legally incompetent or a practitioner who
is disqualified from practicing public accounting must sell his or her interest
in a partnership, limited-liability company or corporation to the remaining owners
or to the legal entity not later than 6 months after the death or incompetency
of the practitioner or not later than 120 days after the practitioner becomes
disqualified.

2. All restrictions on the ownership and
transfer of the interest described in subsection 1 must be set forth in the
articles of incorporation or the bylaws of the corporation or in the operating
agreement or articles of organization of the limited-liability company or
partnership agreement.

1. A corporation, limited-liability company
or partnership shall, on or before January 31 of each year, file with the Board
an annual report on a form provided by the Board reflecting its status and
containing such information as the Board may require.

2. Each corporation, limited-liability
company or partnership shall file a special report within 30 days after any
occurrence relating to the requirements of the law and the regulations of the
Board, including changes in officers, directors, members, shareholders and
amendments to bylaws and articles of incorporation.

3. Each report filed pursuant to this
section must be accompanied by the prescribed fee, including any prescribed
penalty for late filing.

NAC 628.190Renewal of permit. (NRS 628.120, 628.380)Every
permit, except temporary permits for nonresidents, may be renewed by payment of
the prescribed renewal fee on or before January 31 of each year. After that
time, a certificate holder or registrant may not lawfully practice public
accounting in this State until all delinquent fees and penalties have been
paid.

1. Except as otherwise provided in
subsection 2 and NAC 628.110, an applicant for the
renewal of a permit to engage in the practice of public accounting must
complete at least 80 hours of continuing education during the 2 years
immediately preceding the date for renewal of the permit, of which:

(a) At least 20 hours must be completed in each
year; and

(b) Four hours must be in professional ethics.

2. An applicant seeking the first annual
renewal of an initial permit is exempt from the requirements of NAC 628.210 to 628.250,
inclusive.

3. If an applicant for the renewal of a
permit to engage in the practice of public accounting is permitted, certified
or licensed to engage in the practice of public accounting in another state and
resides in that state, the applicant must demonstrate compliance with the
continuing education requirements of that state by signing a statement to that
effect on his or her application to the Board for the renewal of a permit to
engage in the practice of public accounting. If the state in which the
applicant resides does not have continuing education requirements, the
applicant must comply with the requirements set forth in this section.

4. The requirements of NAC 628.210 to 628.250,
inclusive, may be waived by the Board for reasons of personal hardship,
including, without limitation, health problems, military service, foreign
residence, retirement or other good cause.

(a) Is a formal program of learning which
contributes to a growth in professional knowledge and the competence of a
person engaged in the practice of public accounting; and

(b) Meets the minimum standards of quality of
development, presentation, measurement and the reporting of credits set forth
in the Statement on Standards for Continuing Professional Education (CPE)
Programs published by the National Association of State Boards of
Accountancy, as it existed on October 17, 2001, or other educational standards
which may be established by the Board.

2. A copy of the statement may be obtained
at no cost from the National Association of State Boards of Accountancy, 150
Fourth Avenue North, Suite 700, Nashville, Tennessee 37219-2417, or on the
Internet from the website of the National Association of State Boards of
Accountancy at http://www.nasba.org/.

2. Subjects other than those listed in
subsection 1 may be acceptable if the applicant can demonstrate that they
contribute to his or her professional competence. The applicant is responsible
for demonstrating that a particular program is acceptable.

3. Programs for independent study or
self-study are acceptable if they are approved by the Board.

4. The following group programs are
acceptable if they meet the standards specified in NAC
628.220 and deal with the subjects listed in subsection 1:

(a) Professional educational and developmental
programs of national, state and local accounting organizations;

(b) Technical sessions at meetings of national,
state and local accounting organizations and their chapters;

(c) Courses offered by a university or college,
credit and noncredit;

(d) Formal educational programs of a firm;

(e) Programs of other accounting, industrial or
professional organizations;

(f) Meetings of committees of professional
societies which are structured as formal educational programs;

(g) Dinner, luncheon and breakfast meetings which
are structured as formal educational programs; and

(h) Meetings of firms for staff groups or
management groups, or both, which are structured as formal educational
programs. The portions of these meetings which are devoted to the communication
and application of general professional policy or procedure may qualify, but
those portions which are devoted to administrative, financial and operating
matters of firms generally do not qualify.

1. For the purposes of continuing education,
50 minutes of instruction equals one credit of continuing education. Credit for
continuing education may be earned in increments of less than one credit, if at
least one credit is earned for the same subject.

2. Each semester hour of credit given for a
college course equals 15 hours. A quarter hour of credit equals 10 hours.

3. The amount of credit allowed for
correspondence programs and formal programs for independent study or
self-study, including taped programs, will be that amount which is recommended
by the sponsor of the program. Applicants claiming credit for correspondence
programs or formal programs for independent study or self-study must obtain
evidence of satisfactory completion of the course from the sponsor of the
program. Credit is allowed for the period of renewal in which the course is
completed.

4. The amount of credit for continuing
education allowed for independent study will be the amount which is recommended
by the sponsor of the program.

5. The Board may allow credit for continuing
education for the publication of an article or book written by a practitioner
if:

(a) A written evaluation of the article or book is
prepared by a person designated by the Board and submitted to the Board for its
review; and

(b) After a review of the evaluation, the Board
determines that the article or book contributes to the professional knowledge
and competence of the practitioner.

6. Applicants who have served as
instructors, leaders of discussions or speakers at qualified programs may claim
credit for continuing education for time spent on both preparation and
presentation. Credit claimed for preparation may not exceed two times the
number of hours of the presentation. Credit for teaching a course may not be
claimed more than once in any consecutive 12 months without the prior approval
of the Board. Approval will only be granted if the Board determines that the
content of the course has been substantially altered during that period.

1. An applicant for the renewal of a permit
to practice issued pursuant to NRS
628.380 must list on the application the number of hours of continuing
education completed by the applicant during the previous calendar year. The
applicant shall maintain a record of the classes of continuing education
completed by the applicant for 4 years after the applicant files the
application. The application must include, without limitation:

(a) The name of the sponsoring organization;

(b) The location of the program;

(c) The title of the program or a description of its
content;

(d) The dates attended; and

(e) The number of hours of credit claimed by the
applicant.

2. In addition to the record required to be
maintained pursuant to subsection 1, the applicant is responsible for
documenting the acceptability of the program and the validity of the credits.
The documentation must be retained for 4 years after the applicant files an
application for the renewal of a permit to practice issued pursuant to NRS 628.380. The documentation must
consist of one of the following:

(a) A certificate of completion.

(b) A copy of the outline of the course prepared by
the sponsor of the course along with the information required by subsection 1.

(c) For courses taken for academic credit at
accredited universities and colleges, evidence of the satisfactory completion
of the course. For noncredit courses, a statement of the hours of attendance
signed by the instructor.

(d) For formal programs for independent study or
self-study, written evidence of completion.

(e) Any other documentation acceptable to the
Board.

3. The Board will verify information
submitted by an applicant for a permit on the basis of a test. If the Board
determines that the requirement for continuing education has not been met, the
Board may grant additional time for the deficiencies to be corrected.

(c) A brief statement of the rights of the
respondent to examine reports and evidence in advance of the hearing, to appear
with counsel at the hearing, to present evidence and to appeal an adverse
decision.

3. A respondent has the right in advance of
the hearing to examine and copy any report of an investigation and documentary
or testimonial evidence and summaries of evidence in the Board’s possession
relating to the subject of the complaint. The right of examination may be
exercised by the respondent or his or her attorney or agent at the Board’s
office where the records are kept, during regular business hours, if written
notice is given 3 days in advance. Copies of any documents designated for
copying will be promptly furnished. The Board may charge a fee for the copying.

NAC 628.450Publication of decisions. (NRS 628.120, 628.390)Decisions
of the Board following hearings will, if they sustain any charge, be made
public. Decisions that do not sustain a charge will not be made public, unless
the respondent requests that this be done or the Board determines that the
pendency of the charges was the subject of substantial publicity.

1. A person may not perform or offer to
perform tax or management services while holding oneself out to be a certified
public accountant or a public accountant if the person doesn’t hold a current
certificate and a live permit.

2. For the purposes of this section, a
person is considered to “hold himself or herself out” as engaged in the
practice of public accounting if the person represents to persons other than
his or her employer or an affiliate, but for whom the person or the employer is
performing or offering to perform services described in NRS 628.023, that he or she is a
public accountant or certified public accountant. Such representation occurs
with any written or verbal communication which represents the person to be a
certified public accountant, public accountant or other similar title commonly
understood to express expertise in accounting and auditing. The display in a
place where services are performed by a person for others than himself or
herself or his or her employer of a sign, certificate, diploma or other device
whereby the public may reasonably conclude that the person is qualified and
currently entitled to practice public accounting, when such person does not
hold a live permit, constitutes holding oneself out as engaged in the practice
of public accounting.

NAC 628.500Adoption by reference of Code of Professional Conduct;
exceptions. (NRS
628.120, 628.160)

1. The Board hereby adopts by reference the Code
of Professional Conduct adopted by the American Institute of Certified
Public Accountants, as that code existed on June 1, 2003, with the following
exceptions:

(a) References to “member” are amended to refer to
“practitioner.”

(b) The definition of “financial statements” in ET
Section 92 is amended to read as follows:

(1) “Financial statements” means:

(I) Any statements or footnotes related
thereto that purport to demonstrate the financial condition of a person at a
particular time or the change in a person’s financial condition during a
particular period; or

(II) Any statements prepared using a cash
or other comprehensive basis of accounting.

(2) The term includes balance sheets,
statements of income, statements of retained earnings, statements of cash flows
and statements of changes in equity.

(3) The term does not include incidental
financial data that is included in reports concerning advisory services for
management made to support recommendations to a client, tax returns or
schedules in support of a tax return, or the statement, affidavit or signature
of the person who prepares a tax return.

(c) The definition of “practice of public
accounting” in ET Section 92 is amended to have the meaning ascribed to it in NRS 628.023.

(d) The disclosure required pursuant to Section B
of Rule 503 must:

(1) Include the amount of the commission
expressed in dollars or the method, described in plain language, used to
calculate the commission;

(2) Include the name of the person or entity
paying the commission;

(3) Be written;

(4) Be made on or before the date of referral
or recommendation; and

(5) Be signed and dated.

(e) The statement, affidavit or signature of the
preparer of a tax return does not constitute an opinion on a financial statement,
and the preparer of the tax return is not required to make a disclaimer of such
an opinion.

(f) The Board does not adopt by reference pursuant
to this section Appendix B of the ET Appendixes of the Code of Professional
Conduct.

2. A copy of the Code of Professional
Conduct may be obtained:

(a) By mail from the American Institute of
Certified Public Accountants, Attn: Order Department, Harborside Financial
Center, 201 Plaza Three, Jersey City, New Jersey 07311, at a cost of $13.75 for
a printed copy; or

(b) On-line from the American Institute of
Certified Public Accountants at its website at http://www.aicpa.org/about/code/index.html,
free of charge.

1. The provisions of this section and the
provisions adopted by reference pursuant to NAC 628.500
apply to all persons who are engaged in the practice of public accounting in
this State.

2. The provisions of this section and the
provisions adopted by reference pursuant to NAC 628.500
do not apply to a practitioner who engages in the practice of public accounting
outside this State unless the practitioner’s name is included in a financial
statement and the manner in which the statement is written would cause a
reasonable person to believe that the statement was prepared pursuant to the
laws of this State.

3. A practitioner may be held responsible
for compliance with the provisions of this section and the provisions adopted
by reference pursuant to NAC 628.500 by all persons
associated with him or her in the practice of public accounting who are under
the practitioner’s supervision or are the partners or shareholders of the
practitioner.

4. A practitioner shall not permit another
person to perform on his or her behalf, with or without compensation, actions
which, if performed by the practitioner, would result in a violation of any of
the provisions adopted by reference pursuant to NAC
628.500.

(Added to NAC by Bd. of Accountancy, eff. 12-13-96)

NAC 628.520Reporting of certain occurrences to Board. (NRS 628.120, 628.160, 628.386)A
practitioner shall report to the Board, on a form prescribed by the Board, not
more than 45 days after:

2. The practitioner receives the second of
two consecutive modified peer reviews or inspection reports.

3. The decision against the practitioner for
the imposition of a disciplinary action, including, without limitation, a
censure, a reprimand, a sanction, probation, a civil penalty, a fine, a consent
decree or an order for the suspension, revocation or modification of a license,
certificate, permit or right to practice by:

(a) The Securities and Exchange Commission;

(b) The Internal Revenue Service;

(c) Any agency of another state authorized to
regulate the practice of accountancy in that state for any cause except:

(1) The failure to pay by the date due a fee
for a license, certificate, permit or right to practice; or

(2) The failure to comply with a requirement
for continuing education;

(d) Any other federal or state agency for conduct
of the practitioner relating to the provision of professional services; or

(e) Any agency of this State, another state or
territory, or any agency of the Federal Government authorized to regulate
taxes, insurance or securities.

4. Except as otherwise provided in this
subsection, any award or judgment of $150,000 or more against the practitioner
for a claim of or action for gross negligence, violation of a specific standard
of practice, fraud or misappropriation of money in the practice of accounting.
If the practitioner is a firm of certified public accountants, the practitioner
shall notify the Board, pursuant to this subsection, only of an award or
judgment involving the practice of public accounting in this State.

5. The practitioner is charged with, is
convicted of or pleads nolo contendere to, or has an order of deferred
prosecution entered in a case involving the practitioner for:

(a) A felony under the laws of any state or of the
United States; or

(b) A crime, an element of which is dishonesty or
fraud, under the laws of any state or of the United States.

(Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005,
eff. 1-1-2008)

NAC 628.555“Evaluation” defined. (NRS 628.120, 628.160, 628.386)“Evaluation”
means the process conducted pursuant to the practice-monitoring program
established pursuant to NAC 628.550 to 628.590, inclusive, to ensure that a practitioner
complies with the Code of Professional Conduct adopted by reference
pursuant to NAC 628.500.

(Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005,
eff. 1-1-2008)

NAC 628.560“Practice-monitoring findings” defined. (NRS 628.120, 628.160, 628.386)“Practice-monitoring
findings” means the determinations and reports developed as the result of an
evaluation of a practitioner conducted pursuant to a practice-monitoring
program, including, without limitation:

1. A peer review report;

2. A letter of comment;

3. A letter of response;

4. A letter of acceptance; and

5. Any other report or determination
developed as a result of the evaluation of a practitioner conducted pursuant to
a practice-monitoring program.

(Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005,
eff. 1-1-2008)

NAC 628.565“Practice-monitoring program” defined. (NRS 628.120, 628.160, 628.386)“Practice-monitoring
program” means a program to monitor the quality of financial reporting of a
practitioner conducted pursuant to NAC 628.550 to 628.590, inclusive.

(Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005,
eff. 1-1-2008)

NAC 628.570“Transmittal form” defined. (NRS 628.120, 628.160, 628.386)“Transmittal
form” means the document distributed by the Board to be used in submitting
reports for evaluation or to advise the Board that no reports were issued by
the practitioner in the previous year.

(Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005,
eff. 1-1-2008)

1. The Board will review the reports
submitted by practitioners pursuant to NAC 628.550
to 628.590, inclusive, to determine whether the
practitioners have complied with applicable standards of reporting on a 3-year
cycle and will assign one-third of the practitioners in this State to each year
of the cycle.

2. During the month of April of each
calendar year, the Board will notify each practitioner who is required for that
year to submit to the Board a copy of the practice-monitoring findings or a
transmittal form indicating that no audit, review, full disclosure compilation
or attestation reports were issued by the practitioner in the previous year.

3. The 3-year cycle established pursuant to
this section does not affect the requirements for the annual renewal of office
registrations or permits contained in NRS
628.370 and 628.380.

(Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005,
eff. 1-1-2008)

1. Except as otherwise provided in
subsections 4 and 5, a practitioner who performs audit, review, full disclosure
compilation or attestation services shall engage in a practice-monitoring
program, which is approved by the Board, to ensure that he or she is
maintaining the standards of the profession.

2. If a practitioner engages in a
practice-monitoring program, the practitioner shall submit to the Board the
practice-monitoring findings of the practice-monitoring program on or before
May 1 of each year in which he or she is assigned to submit the
practice-monitoring findings pursuant to NAC 628.575.
The Board may extend the deadline for the submission of practice-monitoring
findings to the Board by a practitioner.

3. The Board may verify the validity of the
practice-monitoring findings submitted by the practitioner.

4. A practitioner who does not perform
audit, review, full disclosure compilation or attestation services shall report
these facts to the Board on a transmittal form. The form must be accompanied by
an affirmation by the practitioner that the statements contained in the form
are true. The practitioner is exempt from the requirements of NAC 628.550 to 628.590,
inclusive, only for that period during which the practitioner does not perform
audit, review, full disclosure compilation or attestation services. If a
practitioner who is exempt from engaging in a practice-monitoring program
pursuant to this subsection enters into an engagement to perform audit, review,
full disclosure compilation or attestation services, the practitioner must
notify the Board not more than 60 days after the date of entering into such
engagement and must engage in a practice-monitoring program not more than 18
months after the date upon which he or she enters into the engagement.

5. A practitioner licensed by the Board for
the first time is not required to submit practice-monitoring findings to the
Board until the application for the renewal of his or her annual permit is
submitted for the next year.

(Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005,
eff. 1-1-2008)

1. If the Board determines that the
practice-monitoring findings submitted by a practitioner are deficient or
marginal with respect to any applicable professional standard, the Board may
require the practitioner to:

(a) Correct any deficiency within a specific
period;

(b) Provide a plan to ensure that a similar
occurrence will not occur;

(c) Submit to the Board practice-monitoring
findings more frequently than the practitioner was scheduled to submit such
findings to the Board;

(d) Complete successfully continuing education that
is specified by the Board;

(e) Maintain a library of reference material; or

(f) Submit to the Board, or its designated
representative, the reports developed as a result of the practitioner’s
engaging in audit, review, full disclosure compilation or attestation services,
for review by the Board at the expense of the practitioner, before such reports
are provided to the clients of the practitioner.

2. If a practitioner refuses to comply with
the practice-monitoring findings, the Board may initiate disciplinary action
against the practitioner pursuant to NRS
628.390.

(Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005,
eff. 1-1-2008)

1. Any practice-monitoring finding or other
documentation submitted to the Board pursuant to NAC
628.550 to 628.590, inclusive, is confidential.

2. All documentation submitted to the Board
pursuant to NAC 628.550 to 628.590,
inclusive, must be destroyed when the process of review is complete.

3. Any action taken by the Board pursuant to
NAC 628.550 to 628.590,
inclusive, which does not result in the Board’s initiating disciplinary action
against a practitioner pursuant to NRS
628.390 is confidential.

(Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005,
eff. 1-1-2008)